Ananova:

A society of churches has set up its own gas company to help credit crunch families hit by spiralling energy prices.

The non-profit Society for the Supply of Energy to Church and Social Institutions aims to undercut commercial power companies by 10 per cent.

Officials say the German group buys gas directly from suppliers and is run by volunteers to keep costs down.

Chairman Johannes Baumgartner said: "If we can supply gas at a lower rate by cutting out the middle man, then we have done a good job. We just want to be cheaper.

"On the one hand, we have written into our statutes that we are a non-profit making organisation. On the other, we have a very lean administrative structure.

"We have outsourced the purchase of gas and the billing process, and already agreed fixed costs there. We are also trying to keep down organisational and operational costs to as modest a level as possible."

Now - to the horror of commercial power suppliers - the group from Baden-Wuerttemberg in southern Germany wants to expand.

"At first we want to concentrate on supplying gas to our parishes and to charitable and social organisations here in Baden-Wuerttemberg.

"If that works out well, we'll be glad to welcome others from outside who will increase our purchasing capacity," Baumgartner said.